“Half of all new investment is going into alternatives.” It was a bold statement from an experienced manager that jumped out at a recent Global Real Estate Symposium panel session held by Institutional Real Estate, Inc. Most managers had traditionally looked at alternatives with a sceptical eye but have preached the virtues of diversification so had some exposure. Had the cycle really turned so much that this much money was pouring into what were five years ago considered niche assets?

Traditional sectors

It was a challenging 2023 for global commercial real estate, with investment volumes falling by 46 percent as investors grappled with elevated interest rates and higher debt costs. Despite a tougher environment, private investors remained the most active global buyers for the third consecutive year, taking a record 49 percent share of this US$698 billion market, with the living sectors, industrial and logistics, and offices their top picks. Much h